2025 2026 HSA Contribution Limits and HDHP Qualification

The contribution limits for varied tax-advantaged accounts for the next yr are often introduced in October, aside from the HSA, which comes out in April or Could. The contribution limits are adjusted for inflation every year, topic to rounding guidelines.

You may solely contribute to an HSA in case you’re lined by a Excessive Deductible Well being Plan (HDHP) with no different protection. You should use the cash already within the HSA for certified medical bills no matter what insurance coverage you at present have.

HSA Contribution Limits

Supply: IRS Rev. Proc. 2024-25, creator’s calculation.

Employer contributions are included in these limits.

The household protection numbers are double the person protection numbers in some years nevertheless it isn’t at all times the case yearly. As a result of the person protection restrict and the household protection restrict are each rounded to the closest $50, the household protection restrict might be barely extra or barely lower than double the person protection restrict when one quantity rounds up and the opposite quantity rounds down.

Age 55 Catch-Up Contribution

As in 401k and IRA contributions, you might be allowed to contribute further if you’re above a sure age. If you’re age 55 or older by the top of the yr (not age 50 as in 401k and IRA contributions), you may contribute an extra $1,000 to your HSA. If you’re married, and each of you might be age 55, every of you may contribute an extra $1,000 to your respective HSA.

Nonetheless, as a result of an HSA is in a single particular person’s identify, identical to an IRA — there is no such thing as a joint HSA even when you’ve household protection — solely the individual age 55 or older can contribute the extra $1,000 in his or her personal identify. If solely the husband is 55 or older and the spouse contributes the complete household contribution restrict to the HSA in her identify, the husband has to open a separate account in his identify for the extra $1,000. If each husband and spouse are age 55 or older, they will need to have two HSA accounts in separate names in the event that they need to contribute the utmost. There’s no technique to hit the mixed most with just one account.

The $1,000 extra contribution restrict is mounted by regulation. It’s not adjusted for inflation.

Two Plans Or Mid-Yr Modifications

The boundaries are extra sophisticated if you might be married and the 2 of you might be on completely different well being plans. It’s additionally extra sophisticated when your medical insurance adjustments mid-year. The insurance coverage change may very well be resulting from a job change, marriage or divorce, enrolling in Medicare, the beginning of a kid, and so forth.

For these conditions, please learn HSA Contribution Restrict For Two Plans Or Mid-Yr Modifications.

HDHP Qualification

The IRS additionally defines what qualifies as an HDHP. For 2025, an HDHP with particular person protection will need to have a minimum of $1,650 in annual in-network deductible and not more than $8,300 in annual out-of-pocket bills. For household protection, the numbers are a minimal of $3,300 in annual deductible and not more than $16,600 in annual out-of-pocket bills.

For 2026, an HDHP with particular person protection will need to have a minimum of $1,700 in annual deductible and not more than $8,500 in annual out-of-pocket bills. For household protection, the numbers are a minimal of $3,400 in annual deductible and not more than $17,000 in annual out-of-pocket bills.

Please be aware the deductible quantity is a minimal whereas the out-of-pocket quantity is a most. The utmost out-of-pocket restrict solely applies to the in-network quantity. If the in-network out-of-pocket restrict of your insurance coverage coverage is just too excessive, it doesn’t qualify as an HSA-eligible coverage.

As well as, simply having the minimal deductible and the utmost out-of-pocket isn’t ample to make a plan qualify as HSA eligible. The plan should additionally meet different standards. See Not All Excessive Deductible Plans Are HSA Eligible.

Supply: IRS Rev. Proc. 2024-25, creator’s calculation.

Contribute From Payroll

When you have a Excessive Deductible Well being Plan (HDHP) via your employer, your employer could already arrange a linked HSA for you at a particular supplier. Your employer could also be contributing an quantity in your behalf there. You save Social Safety and Medicare taxes if you contribute to the HSA via payroll. Your employer could also be paying the charges for you on that HSA.

If you contribute to an HSA exterior an employer, you declare the tax deduction in your tax return much like if you contribute to a Conventional IRA. If you happen to use tax software program, be sure you reply the questions on HSA contributions. The tax deduction exhibits up on Kind 8889 line 13 and Schedule 1 line 13.

Non-Dependent Grownup Kids

In case your HDHP additionally covers an grownup baby who’s not claimed as a dependent in your tax return, every non-dependent grownup baby lined by the plan may contribute to a separate HSA of their identify on the household protection stage after they don’t produce other non-HDHP protection. It’s because they meet the eligibility:

(a) Coated by an HDHP with no different protection; and
(b) The HDHP coverage they’ve covers multiple individual.

Every non-dependent grownup baby can open a separate HSA on their very own with an HSA supplier.

Greatest HSA Suppliers

If you happen to get the HSA-eligible excessive deductible plan via an employer, your employer often has a delegated HSA supplier for contributing through payroll deduction. It’s greatest to make use of that one as a result of your contributions through payroll deduction are often exempt from Social Safety and Medicare taxes. If you would like higher funding choices, you may switch or roll over the HSA cash out of your employer’s designated supplier to a supplier of your alternative afterward. See How To Rollover an HSA On Your Personal and Keep away from Trustee Switch Price.

If you’re not going via an employer, or in case you’d wish to contribute by yourself, you too can open an HSA with a supplier of your alternative. For the very best HSA suppliers with low charges and good funding choices, see Greatest HSA Supplier for Investing HSA Cash.